Investor's Edge with Gary Kaltbaum - Continued Slaughter

Episode Date: September 21, 2022

Follow Gary on GaryK.com or http://garykaltbaum.com

At CVS, it matters that we're not just in your community, but that we're part of it. It matters that we're here for you when you need us, day or night, and we want everyone to feel welcomed and rewarded. It matters that CVS is here to fill your prescriptions and here to fill your craving for a tasty and, yeah, healthy snack. At CBS, we're proud to serve your community because we believe where you get your medicine matters. So visit us at CVS.com or just come by store we can't wait to meet you store hours vary by location investors edge with gary coltbaum straight talk about you and your money now from the biz talk studios here is gary cult bomb and welcome once again to investors edge i'm gary coltbaum your host day thanks for being with us today

glad you hear ladies and gentlemen happy that you are listening it is uh september 21st, 2022. And, hmm, we warned you. We started warning you on Christmas of 2018. Christmas Eve, we started warning you. And throughout the rallies, we warned you. Throughout the bubbles,

we warned you. When the bubbles popped, we warned you. When we went into bearish phase, we warned you. When inflation reared its ugly head, we warned you. We predicted inflation before anyone else. Yet we stay under the radar, which is just fine and dandy. Because being out there is somebody, you called something doesn't make you money.

That's okay. We warned you when the markets turn down and we've been warning you about him this whole time. Nothing personal. But we warned you that anybody that would play God with markets,

free markets, with unimaginable amounts of conjured up out of thin air money to have the markets do his way, be his way, act his way. We warned you that there, and we guaranteed you that the eventuality would be busts and bare markets. and the unwinding of those distortions, we warned you. Now, we said to you yesterday, we had no clue what the market would do today. Not a clue.

And why is that? Because from day to day, it's very tough. We care about the big picture, the main trends. and as long as we get them right, we're in good stead. We had an idea what he would do. We did not know what he would say. And of course, we did not know how the market would react. After all, the Dow was already down 2,000 points in the last six trading days.

The NASDAQ, almost 8% in six trading days. If we were to get a near-term bounce, by the way, My thought process of the near term would be we'd get a near term bounce today. It lasted a half hour before the markets went back into what we call the big picture, the main trend, the downtrend, because of the absolute coast-to-coast unwind of this man. doing the exact opposite of what he was doing to froth markets up, not because he wants to, but because he is forced to, because of the monster he created,

and that being inflation. We warned you that inflation cannot be rolled back that easy, and we say that knowing that commodity inflation has topped out, but other things are out there. We warned you that if he went so far to the upside, S-9, S-10, S-11, that caused the bubbles, and of course the pops, what if he'd be that stupid on the other side to go too far, which would cause huge economic problems? We warned you when one of the central bankers, Neil Cash Carrey, this ass clown, and we would say it's, to his face had the nerve to say he was happy on a day the Dow dropped a thousand points.

Imagine one of our central bankers who is charged and has a mandate about stability to be happy about a thousand point drop and your 401ks had misery that day. He was happy. We warned you. These people are nuts. They are hoping for trouble in the economy. They're rooting for you losing your money. I heard and I would not watch his press conference because I didn't want to throw up my lunch.

That he said something to the effect of housing needs to come down. Oh, really? Why? Did anybody even ask him? It was him who created the housing bubble with zero percent interest rates, taking mortgage rates down to 2.6%. I doubt anybody asked it. You know why? These moronic journalists are afraid. of losing their seat at the table to ask moronic questions.

We warned you. And everything we warn you about is coming to fruition. And we are even surprised that the market got trashed into the clothes today. We thought, if anything, we'd get an oversold bounce. And interesting enough, interest rates came down today, giving the excuse to have an oversold bounce. And I will tell you that initially we were down 250 Dow points and in a moment's notice we were up 300, move 550 points and I'm thinking to myself, hey, maybe we'll have that up day, which would not change the big picture. Well, I don't know what caused it. Don't really

care. Remember, for us, it's not the news. It's how the markets react to the news. The market finished on the low tick of the day, which leaves us with the next line. We have no clue what happens tomorrow? We just know the big picture worsened today. And oversold became even more oversold. And at the close today, a thousand and forty-nine New Yearly lows, we warned you. We warned everybody. Every time we had a television appearance, we warned that these people do not know what they're doing. They should not be in these jobs. They think they're God. They think they're God. And now they have the nerve and the grapefruits to think that they can engineer a $21 trillion economy and a $40 trillion market. I have news for you. They can't. God only works so much on the

upside with unlimited amounts of conjured up money before the distortions turn the other way. God now has no control of these markets and really does not have a clue. what he's doing or what he's saying and has no idea. Most people don't have the idea of the word bust. He created bubbles. All bubbles bust. And as we have reported to you and predicted and told you, all the ridiculous bubbles have busted already,

the question is, are they going to get the big indices? The hideouts, we'll see. As always, we'll take it day by day, step by step. sector by sector, stock by stock, issue by issue. But today does not go into the wind column and will not look good on a resume. We warned you. They need to abolish these people. They need to dump them on the sidewalk.

They need to get rid of them very quickly. All this is going on with $31 trillion of debt enabled by them. $31 trillion. There's only one bit of good news that's come out of all this. You're going to make more money on your money markets and your short-term investments, riskless, where he screwed you for quite a while. You remember, 0% on your money. Not anymore.

The jackass has been forced to go coast to coast. We warned you. So up next, market wrap, movers of the day, news of the day. A few little tidbits I found today and whatever else. Hey, by the way, the Atlanta Braves finally lost the game. I'm Gary. This is the one only Investor's Edge. Hi, I'm Gary Kalbaum, hosted a nationally syndicated radio show Investors Edge. We're not just handsome radio people.

We manage investors' money for a living, specializing in fee-based discretionary money management. No big commissions, just a fee on the assets that's managed. We also provide a full range of personalized services, including retirement planning, fixed income, and educational needs, all to assist you in achieving your financial goals. Understanding not all individuals have the same needs, we'll carefully evaluate your personal goals

to determine a proper investment strategy. If your current approach to investing is not getting you to where you would like to be, call us to make an appointment for a complementary portfolio review. The number to call is 888-4-22-559. that's 888422 55559 that's 888 422 55559 investment advisory services offered through call bomb capital management hello hello i'm malcolm gladwell host of smart talks with ibn i recently spoke with ibn's new director of research jake mbata we discussed his vision for the future of quantum computing at i vm research what we always do is answer what is the future of computing, whether it's coming up with new algorithms, coming up with

better AI, coming up with quantum, or coming up with just how do different accelerators go together. It's our DNA to answer the question of what is the future. Isn't it a perfect problem for IBM because you kind of need to have a legacy of building stuff? Yes. Building actual physical machines. Yeah, it's why I came to IBM. I wanted the experience, the culture of, building hard things that others have not done before.

Mm-hmm. Mm-hmm. Where do you imagine we are in the timeline of this technology? There will come a point when it will mature. Right? Yeah. My cell phone is a mature technology at this point. How far are we from that point with Conton?

By 2029, we'll build the first fault-tolerant quantum computer. That is one that can run a very, very large, large problem. To learn how IBM is building the future of computing, visit IBM.com slash quantum. Success starts with your drive, and American Public University is here to fuel it. With affordable tuition and over 200 flexible online programs, APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire,

APU will fuel the journey. Learn more at APU.com. P-U-P-U. It's time to switch on the integrator units and get the brain cells working. You're listening to. Hey, this promises to be fun. Investors Edge. The last bastion of quality programming.

With Gary Coltbaum. It doesn't get better than this. Well, well, the market wrap is brought you by Investment-Models.com. That's Jim Murbach. One of the great market timers. No gray areas with the man you're either in or out of the market. With his proprietary indicators, go check it out.

investment dash models.com now we figured our thought we told you yesterday we have no clue about today but really in our minds we thought today we could bounce why we dropped 2,000 points and then the news would be out okay they finally did what they had to do for now market down 522 on the Dow S&P 66 NASDAQ 204 NASDAQ 100213 transports 128 a thousand and forty-nine new yearly lows, hardly any new yearly highs, advanced declines were pitiful. And by way of crazy, let me just do the Dow if you don't mind, the Dow went from 30,000 888 dropped 474 points within 10 minutes. At 235, it went from 3447 to 3102020 in 10 minutes.

Went up 593 points. In 10 minutes, the market topped on the 246 bar, 2 o'clock 46 minute bar. dropped from 31020 and closed at 3183. Last I looked, 843? 843? Whatever. I don't have my abacus out. Almost 900.

I'm looking at 14 other things while I give you the numbers. Imagine that. 837 points. I got the calculator out. We don't even know what he said. He was in a press conference. We don't know what he did. We don't care.

Remember, it's not the news. It's how markets react to the news. And as we close on the day, the Dow was nearing the June-July lows. The S&P is not as close. The NASDAQ, a little closer. And we repeat. I don't even know what he said.

I got a few tidbits that were sent to me, but nothing unexpected. He's a moron. He said they're going to raise rates look like another three quarters a point to go to 4%. I think they're at three, like three right now. So they'll go to three and three quarters. And interesting enough, yields drop today. That's your finish of the day. And I repeat, we're a little surprised.

oversold became more oversold A few things Number one Do not believe the articles and the people that tell you That your mortgage rates went up today because of the Fed Mortgage rates would come down today The 10-year yield dropped From 3573 to 3510

What have we told you here? Be careful of the misinformation from people who do not do their homework. That's number one. Here are some of my worries. The last time the two-year yield hit 4%. And as I speak, the two-year yield is at 4.04%. The last time we were at 4%.

Our debt was $9 trillion federally. It's now $31 trillion. That means to service that debt is huge. What else am I worry about? Everybody's hanging on the every word of a moron. There's nobody worse than this person to be doing what he's doing. Everything he has done has been wrong. From the bubbles to the easy money, to the screwing of savers,

to creating the biggest wealth inequality in our history, to distorting all price and yield, to screwing the free markets, and everybody's hanging on this people's every word, an unelected person that has no idea what the hell he's doing. He's got to be in prayer mode every morning. What else am I worried about? This same man is saying that the housing market

may go through a correction. This idiot does he even know we're already having a big correction now? He had the, I can't use that word, the grapefruits to say, a housing market correction should restore balance to the sector. You mean the out-of-wack balance that he caused? Yet he's running the show. Quantitative tightening. Remember he printed all this money to get to $9 trillion.

bucks we are told they're going to do the opposite yet we have not seen it yet what if they end up having to do that look what's already happened and then this the Fed sees 2,023 Fed rates between 4.4 and 4.9 percent before they thought it would be 3.6 to 4.1 but then they see in 2024 3.4 to 4.4% this man and these people at the Central Bank didn't see inflation staring them straight in the face and they're telling us what 2024 is going to be like let alone 23 that's not here yet we have nothing but worries. Up next. Other news. Lots of it. This is the one-only investor's edge. Hello, hello. I'm Malcolm Gladwell, host of Smart Talks with IBM. I recently spoke with

IBM's new director of research, Jake Mbata. We discussed his vision for the future of quantum computing. At IBM research, what we always do is answer what is the future of computing. Whether it's coming up with new algorithms, coming up with better AI, coming up with quantum, or coming up with just how do different accelerators go together. It's our DNA to answer the question of what is the future. Isn't it a perfect problem for IBM because you kind of need to have a legacy of building stuff? Yes. Building actual physical machines. Yeah, it's why I came to IBM. I wanted the experience, the culture of building hard things that others have not done before. Where do you imagine we are in the timeline of this technology?

There will come a point when it will mature. Right? My cell phone is a mature technology at this point. How far are we from that point with Quantum? By 2029, we'll build the first fault-tolerant quantum computer. That is one that can run a very, very large, large problem. To learn how IBM is building the future of computing, visit IBM.com slash quantum. Success starts with your drive, and American Public University is here to fuel it.

With affordable tuition and over 200 flexible online programs, APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire, APU will fuel the journey. Learn more at APU.APUS.edu. You. Cash flow crunch. OnDec's small business line of credit gives your business immediate access to funds up to $200,000 right when you need it. Cover seasonal dips, manage payroll, restock inventory, or tackle unexpected expenses without missing a beat with flexible draws, transparent pricing, and control over repayment. Get funded quickly and confidently. Apply today at ondeck.com. Funds could be available as soon as tomorrow. Depending on certain loan attributes, your business loan may be issued by OnDec or Celtic Bank. OnDac does not lend in North Dakota. All loans and amounts. subject to lender approval. You're listening to. America is talking.

Investors Edge. He's got to be pleased with that. The crowd is just on his feet here. He's a Cinderella boy. With Gary Colbomb. It comes highly recommended. You're going to feel better if you talk to him. And welcome once again to Investors Edge.

Thanks for being with us today. So let us go through a few things that I got something sent to me. I want you to listen to this. If your monthly mortgage payment is fixed, let's say it was just $2,500 and it stayed fixed. At a 3% mortgage rate on a 30-year mortgage with 20% down, you can buy a home at $741,000 and have a mortgage of $592. At 3%, it's a $2,500 payment.

I believe that does not include tax. at 6% instead of being able to buy a $741,000 home, you can only get a $521,000 home with a mortgage of $416,000 with that same payment of $2,500. And you want to know why you think housing, I think housing prices are going much lower? Let me repeat that.

At 3% with 20% down on a 30-year mortgage, a $2,500 payment could get you a home for $741,000 with a mortgage of $592. You're putting 20% down. At 6% instead of affording $741,000 home, you can only afford a $521,000 home on that $2,500 payment. these are the things we follow. It's called reality. We'll keep you up to date on it.

Other news. So the Attorney General of New York is saying Donald Trump and his kids and their company staggering fraud. What she is claiming is that they fraudulently booked pricing on real estate that was fantasy land pricing in order to A get loans, B look richer than they were, and all that. Here's the shame of all this.

First off, we're not going to judge on it. We're going to see evidence, see what happens. We're not going to judge. This woman, the attorney general, is on video. When Trump was president. And basically the video was, I'm going to get him. So doesn't that make you think about the credibility of anything she does? I'm going to...

That's basically the video. Go look it up. And that's the shame. Because you want to trust these people that they're acting in the best interest. And by the way, this is one of these people that is... killing New York with kissing the arse of criminals while hurting the victims. But that's besides the point. I don't trust her.

I don't trust Trump. I don't trust her on this. When normally I'd say, wow, she's on video. I'm going to get him. So that's a little bit of news today. That matters or doesn't matter. Russia I just want to

let you know because these are the things I follow this Russians are racing to flee the country one-way tickets get me the hell out because Vladimir Putin is asking for 300,000 reservists to fight the war in Ukraine and Russians have had enough this guy's a psychopath

an absolute psychopath This is Hitler-esque, not in numbers, but what he has done. They're finding mass graves in Ukraine of soldiers that were murdered but tortured first. This man should go on trial at the Hague. Can they still hang people? Next, well, two people finally came forward, one that 1.3,000. $3.7 billion mega millions jackpot in Illinois. And I got to applaud them. Do you know why?

Because in Illinois, you do not have to be disclosed who you are. I think in Florida you have to disclose who you are if you won one of these things. I applaud them for doing the right thing. Taking the money and shutting the hell up. And if they're smart, they don't start going by 10 Ferrari, diamond rings, $50,000 Rolexes, if they're smart.

Because then they'll be found out quickly. But good move on their part. Two people. I guess they bought the tickets together and agreed to split it. 1.337 billion, so basically they would have got usually you get about 60

to, let's call it 60, 6 times 1, probably 800 million minus taxes 850 million probably minus taxes they got they probably got about 550 million bucks to split between the two of them

275 million you can take that and buy a one year for 4% now and make 10 million bucks in that one year minus federal taxes. What's tonight the powerball? I think I'm going to have to go. I told each and every one of you weeks and weeks and weeks and weeks and weeks and weeks and weeks ago. We did shows on the economy. We usually markets and the economy. We did specific shows on the economy that we told

you that the inflation would lead to a good recession, no matter what any of these dofuses do. we gave each and every one of you what we call sound advice we're going to repeat that sound advice again because if we go through what I think we're going to go through on the employment

side of the equation unfortunately because of these mudhounds in DC there's going to be a lot of jobs lost our advice months ago for each and every one of you that our employees make yourself more valuable than anybody else at your company, that there would be no way, shape, or form you were in the front of the pecking order if by chance your company has to lop off the amount of employees.

That advice rings true again today. make yourself the go-to person at your firm. Work twice as hard, twice as long, and twice as smart as the next person who already works twice as hard, twice as long, and twice as smart. Make yourself be the difference at your company, because I now worry that we're going to enter that next realm. And that is companies recognizing, well, we got a thousand employees and business is now getting real soft and we have to start preparing for it. Where can we cut the fat? Up next. We'll expound a little more. This is the one only investor's edge. Hello, I'm Malcolm Gladwell,

host of the podcast Smart Talks with IBM. I recently sat down with IBM's chairman and CEO, Arvin Krishna. And I asked him, how can companies use AI to its fullest potential to create smarter business? My one advice to them, pick areas you can scale. Don't pick the shiny little toys on the side. For example. If anybody has more than 10% of what they had for customer service, 10 years ago, they're already five years behind.

If anybody is not using AI to make their developers who write software 30% more productive today, with the goal of being 70% more productive. Yeah. Wow. So we are not asking our clients to be the first experiment on it. We say, you can leverage what we did. We are happy to bring out all our learnings, including what needs to change in the process, because the biggest change is not technology. is getting people to accept that there's a different way to do things.

To listen to the full conversation, visit IBM.com slash smart talks. Success starts with your drive, and American Public University is here to fuel it. With affordable tuition and over 200 flexible online programs, APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, Our programs are designed for people who never stop. You bring the fire, APU will fuel the journey. Learn more at APU.APUS.edu.

Cashflow crunch? OnDak's small business line of credit gives your business immediate access to funds, up to $200,000, right when you need it. Cover seasonal dips, manage payroll, restock inventory, or tackle unexpected expenses without missing a beat. With flexible draws, transparent pricing, and control over repayment, get funded quickly and confidently. Apply today at on deck.com.

Funds could be available as soon as tomorrow. Depending on certain loan attributes, your business loan may be issued by OnDec or Celtic Bank. Ondek does not lend in North Dakota all loans an amount subject to lender approval. You're listening to. What do we wait for? Well, what are you waiting for? One, two, ready, go. Action!

In the Gester's Edge. With Gary Culper. So I want to let you know, let's backtrack a second. The advice we gave you months ago, as I just said rings true even more today. I believe that we're going to start to see some material job losses sooner rather than later. We've already seen it in what we call logic. Mortgage business. A lot of job losses.

Mortgage applications have just crashed. the crypto industry. Tons. We don't know what's really next. We just think that there's going to be a lot of little board meetings in small, medium, large, gargantuan companies. How many people do we have? And how much do we need in this division? How much overlap do we have?

Can we get away with this? and if we do get rid of a certain amount of people, what if things start to get better, what will be our ability to hire? I believe there's going to be a lot of those questions. If not already, if not already happening, going forward. Make yourself invaluable. We told you that months ago, we say it again today.

Now, you're also going to be hearing from people. Not going to name names, but some famous people are out today saying the Fed needs to slow down their rate hikes because it is pushing the economy into recession. We disagree. We believe why the economy is in trouble is because the reverse wealth effect. We believe a lot of the economy on the way up was wealth. The bubbling up of asset prices making people feel wealthy. in stocks, bonds, NFTs, crypto, housing, anything, that's over. And it's a complete reverse.

We think that's what's doing it. The Fed going to 3%, in my humble opinion, means zero. You got the one year at 4%. You got the 10 year at over 3.5. That's what matters most. the Fed's still off the playing field. They're not even in the game. And why would these other people say all this?

Because they're in the business. It's killing them. It's absolutely killing them. And they're hoping the Fed goes back to their bubble-making ways. It looks like the Fed is now determined for higher yields from their end. We've been talking about also what you hear during bear market. and these are the things we want you to be careful about. We saw somebody today who was bullish like all hell in December, January, February, and March,

now bearish is all hell, could drop another 20% from here. And then came out and said something, oh, full disclosure, we're 80% invested. And I'm thinking, wait a minute. If I thought the market was dropping 20% from here, am I going to be 80% invested? In other words, this person is losing people's you know what. Anyway, there is the conflict of Wall Street. What have we told you throughout the years? The problem with Wall Street, there's a fully investment investing vehicle. You know you're hearing it all of you that have people that you tell them, look, I'm getting killed. Are you doing anything? Well, we stay fully

invested because nobody can time the market. That's what they tell you. But of course, we've proven you can. You just got to work at it. You just have to realize these people are not really managing money. They're just praying for bull markets 100% of the time. And when bear markets come along, don't worry, everything's okay. And I'll grant them this. We've got 100 years of history plus years that at the end of bare markets, we always have new bull markets and we're always gone to new all-time highs. But there have been moments, 1966 to 1982, the market did nothing. 2000 to 2000, I don't know, it was 15 years before we got back to the highs. And then there's disasters. We're Citigroup. City Group, that famous never sell banking. It's at $46.33. The old high was 60.

Oh, excuse me, it did a one for 10 split. The old high was 600. It's still down 90% from 2008. They forget to mention that. We hope you've been listening for the last year during the spare market. We warned that in bare markets, the big leaders of the past bull will on average drop 70%. We warned you that the bubbles would be crashing. They all crashed. We warned you about the IPOs were ridiculous valuations, the SPACs,

The head spack ass is going by the wayside. And now people are calling him a crook. What will we tellin you while he was making his billions? This is a load of crap in real time. The meme stocks crushed. Short squeeze crushed. No sales anything crushed. So we repeat, we hope you've been listening.

when the main trend changes, we'll yell and scream. We don't know the short term. We thought the market could be up today. It was crushed. We know the big picture. We know the main trends. I repeat, when the main trend changes, we'll yell and scream at you. At the close of today, did not happen.

You'll have a great evening, drive carefully when you get home. like we do, it's quite simple. Make sure you hug your family, hug your children. They will feel better, you will feel better. I promise. Get in some legwork in there, work out, do a little, let a sweat, get yourself in shape, alcohol is overrated. Tomorrow will be on Varnie & Company, 10 a.m.

Fox Business Network will be back same time tomorrow with this show. Have a great evening, everybody. Appreciate you being here. Bye-bye. This has been Investor's Edge with Gary Coltbaum on BizTalk. episodes or to get in contact with Gary, go to GaryK.com. That's GaryKK.com. Success starts with your drive, and American Public University is here to fuel it. With affordable tuition and over 200 flexible online programs, APU helps you gain the skills and confidence to

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